Real Estate Investor · New York City, NY · Member since 2016 · 10 posts · 6 votes
Would really appreciate input from the community on this one. I'd like to invest in a couple condos in the Charlotte, NC market and for the most part the desired return is there until I incorporate property management costs. I'm investing from a distance (NYC) and I'm newish which is why I felt it would be smart to have a PM in the picture. My questions is, do I really need a long term property manager for a new condo or could I utilizes a PM/broker for the initial tenant screening/lease up process?
I own several Condos in CLT. What you are referring to is the HOA Manager, the Manager of HOA is responsible for the Common Grounds not the inside of the unit. As the owner of a Condo you are responsible for the walls within and anything outside is HOA responsibility..
I started my journey buying Condo Units which I still own but there are pluses and negatives as with any investments that you need to be aware of. The biggest negative is you have no control of HOA fees and if Condo is Non-Warrantable harder to get financing not to mention dealing with any HOA is always challenging.
To answer your question yes you need a Property Manager that works for you not the HOA.. Standard PM fee in CLT is 8% is worth it especially in times like this that its hard to travel and not to mention in this time us New Yorkers are not wanted.. Try driving to midwest or Southeast with NY license Plate in this times, dont recommend..
We offer property management for condos up here in CT and generally ( I know this is going to sound crazy coming from a property manager) it isn't worth it for the consumer**. Shocker, I know. As property managers it is our job to stay on top of things like repairs, maintenance of the property, tenant needs, mortgage payments, etc. etc. etc. In a condo, a lot of the stuff a PM can offer in terms of leveraging their contacts to get you a better deal is usually addressed by the HOA.
**Here are some reasons where I would say my above feedback doesn't apply: 1. You're busy as all heck. You don't have time to field a tenant call should it come up. 2. You're busy as all heck. You don't have time to stay on top of the financials and maintain accurate books for the unit.
3. You can't find a broker you trust to handle the tenant screening / placement process.
4. It just isn't worth your time. If you're making beaucoup $ per hour, just hire it out to a great PM company and be fairly worry free.
We manage a condo in Vernon for a client that's in California. He wanted boots on the ground that would walk the property, field all tenant calls, and take care of the financials for him, so he hired us. That's just one scenario though, and doesn't apply to all.